Correlation Between Quad Graphics and Nisun International

Can any of the company-specific risk be diversified away by investing in both Quad Graphics and Nisun International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Quad Graphics and Nisun International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Quad Graphics and Nisun International Enterprise, you can compare the effects of market volatilities on Quad Graphics and Nisun International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Quad Graphics with a short position of Nisun International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quad Graphics and Nisun International.

Diversification Opportunities for Quad Graphics and Nisun International

-0.19

Correlation Coefficient

Quad Graphics  Nisun International

Good diversification

The 3 months correlation between Quad and Nisun is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Quad Graphics and Nisun International Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisun International and Quad Graphics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Quad Graphics are associated (or correlated) with Nisun International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisun International has no effect on the direction of Quad Graphics i.e., Quad Graphics and Nisun International go up and down completely randomly.

Pair Corralation between Quad Graphics and Nisun International

Given the investment horizon of 90 days Quad Graphics is expected to generate 1.7 times less return on investment than Nisun International. But when comparing it to its historical volatility, Quad Graphics is 1.82 times less risky than Nisun International. It trades about 0.05 of its potential returns per unit of risk. Nisun International Enterprise is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  471.00  in Nisun International Enterprise on December 2, 2024 and sell it today you would earn a total of  227.00  from holding Nisun International Enterprise or generate 48.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Quad Graphics  vs.  Nisun International Enterprise

Quad Graphics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quad Graphics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Nisun International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nisun International Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Nisun International is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Quad Graphics and Nisun International

The main advantage of trading using opposite Quad Graphics and Nisun International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quad Graphics position performs unexpectedly, Nisun International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nisun International will offset losses from the drop in Nisun International's long position.

The idea behind Quad Graphics and Nisun International Enterprise pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.